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Navigating the Complexities of Oil & Gas Manufacturing

Dude Solutions
  • Aug 02, 2018
  • 3 minute read

Tips to Simplify Your Processes

The oil and gas production industry faces unique challenges separate from other manufacturers. Factors effecting the oil and gas industry range from natural disasters to the instability of nations. Tariffs and political agendas influence gas prices, increasing or decreasing profits. Dealing in one of the most volatile industries, oil and gas companies constantly face fluctuations, and then investors face these same risks when returns increase or decrease.

Many rigs are in remote locations, particularly offshore ones which can be as far as 200 miles off the coastline. Combatting equipment failure is a main priority due to the large amount of lost revenue from halts in production. In addition, oil rig equipment is exposed to harsher conditions, taking a greater toll on its integrity. Preventative or preventive maintenance (PM) for equipment housed outdoors becomes a different ball game than indoor assets and requires a m­­­ore calculated approach.

The production of oil has three stages, which require different compliance records and needs. While upstream deals with the exploration and development of locations to drill, mid- and downstream are focused on the actual extraction and refining. Risk is much greater financially for the upstream portion, while the mid- and downstream are mainly concerned with safety. Daily operating costs for rigs range depending on size and location, but a rough average runs around $1 million a day.

See our solutions for oil and gas manufacturers.


Importance of Preventive Maintenance

Onshore and offshore drilling vary in some respects while sharing similarities in others. Onshore is classified by maximum drilling depth and mobility, while offshore is by structure — a bottom supported or floating unit. On- and offshore structures are comparable in several ways with assets proving the largest overlap. Both have aging outdoor assets that are approaching end of life and need PM schedules for continued productivity.

Currently, more than 50% of global production is from assets that are more than 50% into their useful life. This creates a need for more regular maintenance through PM tracking in order to ensure process optimization and increase the asset’s useful life. Without preventive maintenance schedules, efficiency decreases and, in turn, so do profits.


Dealing with current shareholder expectations of “doing more with less” creates pressures on management, but tracking processes with a CMMS system can provide the additional data needed to analyze productivity and increase efficiency.


See how easy it is to improve your PM program with a demo of our preventive maintenance software for manufacturing.

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